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This paper presents the role of Zakat in poverty alleviation and economic development in the community as well as in the nation. The researcher has given a special attention and field work in Maruthamunai, a village in Kalmunai Municipal Counicil of Amparai District. A variety of reforms and new ideas in the management and institutions are responsible for collecting and distributing of zakat. Zakat is a specific property with certain conditions prescribed for certain people and given to people or certain people (recipients) as well. The main aim of zakat has two dimensions i.e., spirituality (individually) and social economy to empowerment and enhance the status of the ummah (community). ( Mutiara Dwi Sari….2013) Sri Lanka as a country with minority Muslim population has a challengeable in collecting and distributing of zakat according to the state rule. If zakat is managed properly, it will certainly have positive effect on the wellbeing of Sri Lankan poor Muslims.Maruthamunai which researcher has focused specially is a village with 100% of Muslim population. The Zakat management has been practiced as an institutional level for last twenty years at this village with the coordination of Mosques Federation and some Dawah movements. However, Lack of coordination between all institutions of zakat management has resulted in the achievement of zakat collection and distribution does not optimum. The research will bring the reason of this backward of Zakat management into the light.

“Role of Zakat in poverty alleviation and economic development – special field study of Maruthamunai”